Indianapolis Life Insurance Company Enterprise Level Balanced Scorecard Workshop II Performance Measures & Targets

2 Agenda Confirm Critical Success Factors8:00 - 8:30 Breakout Session I: Measures8: :00 –Breakout Groups –Coffee Break –Reconvene & Present Group Session: Target Setting10: :30 Discussions & Next Steps11: :00

3 Scorecard Template To be an innovative, growing, high performance, public financial services enterprise that makes the future better for all our stakeholders. Our Objectives Our Vision Our Measures of Success Attracting Connecting Developing Empowering Building new and existing distribution systems Co-marketing, private label relationships Affiliations and acquisitions Pricing, persistency, mortality, investments, expenses Create economic value for investors Products and services to meet customer needs Productive, mutually beneficial relationships with distribution partners Employee owners Good corporate citizens Create value for all stakeholders Grow profitably Win through people

4 Critical Success Factors Considered Enhanced economic value Increase current earnings Enhance future potential Earnings per share growth GAAP ROE Consistent results Quality earnings Quality accurate management reporting Product innovation Timeliness to market Satisfy needs of current customers Meet needs of new customers Revenue growth Increase sales of profitable products Improve quality of service, customer support Understand customer needs Build current and new distribution Flexibility, accuracy, timeliness Critical mass for cost effectiveness Handling customers with multiple products with multiple systems Easy to do business with - customer friendly service Risk management Efficient and effective business fundamentals Time, cost & quality Optimize production costs Optimize technology Responsive and effective infrastructure Expense management Seamless integration across geographic regions Cross-sell Improve quality of service Employee satisfaction Empowerment Common culture Education and training Recruit and retain Management skill sets Communications Accountability Energetic environment Well aligned incentives Practice leadership orientation Financial Customer Process Learning & Growth

5 Critical Success Factors Considered Enhanced economic value Increase current earnings Enhance future potential Earnings per share growth GAAP ROE Consistent results Quality earnings Quality accurate management reporting Efficient and effective business fundamentals Time, cost & quality Optimize production costs Optimize technology Responsive and effective infrastructure Expense management Seamless integration across geographic regions Cross-sell Improve quality of service Employee satisfaction Empowerment Common culture Education and training Recruit and retain Management skill sets Communications Accountability Energetic environment Well aligned incentives Practice leadership orientation Financial Customer Process Learning & Growth Product innovation Timeliness to market Satisfy needs of current customers Meet needs of new customers Revenue growth Increase sales of profitable products Improve quality of service, customer support Understand customer needs Build current and new distribution Flexibility, accuracy, timeliness Critical mass for cost effectiveness Handling customers with multiple products with multiple systems Easy to do business with - customer friendly service Risk management

6 Enterprise Critical Success Factors - Draft Objectives: Win through people, Grow profitably, Create value Enhance Economic Value Consistent & Quality EPS Growth Consistent & Quality ROE Financial Customer Process Learning & Growth Expand customer base & penetration of existing customers Expense management Cross-Sell the Product Line Develop innovative, timely profitable products Maintain appropriate rating Provide quality service meeting customer needs Understand & communicate customer needs Efficient & effective business fundamentals Optimize technology & infrastructure Employee Satisfaction Effective leadership Recruiting & retention Education & training Well-aligned incentives

7 Enterprise Critical Success Factors - Draft Consistent & Quality EPS Growth Consistent & Quality ROE Cross-Sell the Product Line Objectives: Win through people, Grow profitably, Create value Enhance Economic Value Develop innovative, timely profitable products Maintain appropriate rating Recruiting & retention Education & training Employee Satisfaction Well-aligned incentives Expand customer base & penetration of existing customers Understand & communicate customer needs Efficient & effective business fundamentals Optimize technology & infrastructure Provide quality service meeting customer needs Effective leadership Financial Customer Process Learning & Growth Expense / Capital management

8 Identify Strategic Measures Definition: A unit of information, financial or non- financial, that provides meaningful feedback to strategy execution and success towards the achievement of the Critical Success Factors Key Worksteps: Identify measure(s) for each Critical Success Factor Narrow list of Critical Success Factors if Appropriate Define measures for documentation - formula, frequency VisionStrategic Thrusts CSFs Measures

9 Enterprise Critical Success Factors - Draft Objectives: Win through people, Grow profitably, Create value Financial Perspective Learning & Growth Customer Perspective Internal Process Perspective

10 Measures & Targets

11 Breakout Groups o Jim o Steve o Jack o Karla 1 - Sun Room3 - Board Room2 - Library o Greg o Larry H. o Linda o Gene o Gary o Marc o Jon o Lisa

12 Next Steps Refine Measures Refine “Template” for Communication Complete Measurement “Dictionaries” Determine “Go-Wide” or “Go-Deep” –Cascading Measures –Instituting Process at Enterprise Level – Target Setting – Reporting – Tactics – Evaluation of Performance Process Determine Measurement Logic and Rollout Philosophy

13 Measurement Definition : Reporting & Analysis: Given performance signals, what can be done to improve results? How to report & analyze performance measures most effectively? Evaluation & Improvement: What measures reflect strategy execution? Process Strategic Individual QuickContinuous Re-engineerFocus Improvement Portfolio Stakeholder Value Balanced Scorecard Process The Balanced Scorecard is a Continuous Process

14 Enterprise Critical Success Factors - Group 1 Objectives: Win through people, Grow profitably, Create value Financial Perspective Learning & Growth Customer Perspective Internal Process Perspective

15 Enterprise Critical Success Factors - Group 2 Objectives: Win through people, Grow profitably, Create value Financial Perspective Learning & Growth Customer Perspective Internal Process Perspective

16 Enterprise Critical Success Factors - Group 3 Objectives: Win through people, Grow profitably, Create value Financial Perspective Learning & Growth Customer Perspective Internal Process Perspective

17 Measures & Targets - Group 1

18 Measures & Targets - Group 2

19 Measures & Targets - Group 3